Tax Cuts: Good or Bad for the Economy?

[sailaway21]

God help you but here's about all any non-economist can stand to read on the debate as to whether tax cuts increase revenue via a more robust economy or whether tax increases can in fact have a silver lining. My advise is to read the research in sections or risk fracturing your keyboard when you pass out. But, it's pretty much all here.

Tax Hikes, Economic Clouds, and Silver Linings: A Review of Deficits and the Economy

[sailaway21]

There is more on the subject, and this article is more readable than the last, if only because it's got more "pictures". Award yourself a Phd in Econ if you make it through both. I'm only part way through this one myself.

The Correct Way to Measure the Revenue Impact of Changes in Tax Rates

[bestfriend]

Zzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz Huh? Wha? Oh sorry, I seem to have fallen over on my Z key.

[Rockter]

Tax cuts have their place, but you have got to cut spending to parallel the tax cuts otherwise borrowing will have to rise to make up the difference and that costs far more in the long term.

In 1978 taxes here in the UK were awful... top rate of income tax was 83% (why bother?) and investment taxes 98% (yeeeeaaaarrrrrgggghhhhh!). All from a socialist government... the money ran out.... it always does with socialists.

In 1979, Margaret Thatcher dropped the top rate to 60%, then later to 40%.

Tax revenues soared.

[PBzeer]

Do you want an answer based on empirical evidence, or feelings?

[chucklesR]

Tommie said it best PB,

Feel me